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he promised that he would pay it back in a month

The interest rate is inconsequential compared to the risk of never seeing the original $2,000 ever again. You're not a bank and high-risk, negative reward is the usual outcome.

Turn this "promise" into a binding contract with a payment schedule and potentially collateral.

If you value their friendship then you will not charge interest for such a short-term loan.

If the other person values your friendship then they will pay back the entire principle within a timely fashion.

The reality is that a person who actually needs $2,000 and thinks they can comfortably pay it back in a month is not on level ground. Do they actually have a plan for getting caught up within one month's time? I'd estimate such a feat to require 20 hours of overtime per week. A realistic repayment schedule is $300-500 per month.

As a friend, I would have said that $500 is all I can offer for now. In my mind, I'd write it off as a gift so I can sleep at night but would hold them accountable for repayment.

he promised that he would pay it back in a month

The interest rate is inconsequential compared to the risk of never seeing the original $2,000 ever again. You're not a bank and high-risk, negative reward is the usual outcome.

Turn this "promise" into a binding contract with a payment schedule and potentially collateral.

If you value their friendship then you will not charge interest for such a short-term loan.

If the other person values your friendship then they will pay back the entire principle within a timely fashion.

The reality is that a person who actually needs $2,000 and thinks they can comfortably pay it back in a month is not on level ground. Do they actually have a plan for getting caught up within one month's time? At $15/hour, they would need to work 89 hours of overtime in a month to earn $2,000; that doesn't sound sustainable to me. A realistic repayment schedule is $300-500 per month.

As a friend, I would have said that $500 is all I can offer for now. In my mind, I'd write it off as a gift so I can sleep at night but would hold them accountable for repayment.

he promised that he would pay it back in a month

The interest rate is inconsequential compared to the risk of never seeing the original $2,000 ever again. You're not a bank and high-risk, negative reward is the usual outcome.

Turn this "promise" into a binding contract with a payment schedule.

If you value your friendship then you will not charge interest for such a short-term loan.

If the other person values your friendship then they will pay back the entire principle within a timely fashion.

The reality is that a person who actually needs $2,000 and thinks they can comfortably pay it back in a month is not on level ground. Do they actually have a plan for getting caught up within one month's time? I'd estimate such a feat to require 20 hours of overtime per week. A realistic repayment schedule is $300-500 per month.

As a friend, I would have said that $500 is all I can offer for now. In my mind, I'd write it off as a gift so I can sleep at night but would hold them accountable for repayment.

he promised that he would pay it back in a month

The interest rate is inconsequential compared to the risk of never seeing the original $2,000 ever again. You're not a bank and high-risk, negative reward is the usual outcome.

Turn this "promise" into a binding contract with a payment schedule and potentially collateral.

If you value their friendship then you will not charge interest for such a short-term loan.

If the other person values your friendship then they will pay back the entire principle within a timely fashion.

The reality is that a person who actually needs $2,000 and thinks they can comfortably pay it back in a month is not on level ground. Do they actually have a plan for getting caught up within one month's time? I'd estimate such a feat to require 20 hours of overtime per week. A realistic repayment schedule is $300-500 per month.

As a friend, I would have said that $500 is all I can offer for now. In my mind, I'd write it off as a gift so I can sleep at night but would hold them accountable for repayment.

he promised that he would pay it back in a month

The interest rate is inconsequential compared to the risk of never seeing the original $2,000 ever again.

Turn this "promise" into a binding contract with a payment schedule.

If you value your friendship then you will not charge interest for such a short-term loan.

If the other person values your friendship then they will pay back the entire principle within a timely fashion.

The reality is that a person who actually needs $2,000 and thinks they can comfortably pay it back in a month is not on level ground. Do they actually have a plan for getting caught up within one month's time? I'd estimate such a feat to require 20 hours of overtime per week. A realistic repayment schedule is $300-500 per month.

As a friend, I would have said that $500 is all I can offer for now. In my mind, I'd write it off as a gift so I can sleep at night but would hold them accountable for repayment.

he promised that he would pay it back in a month

The interest rate is inconsequential compared to the risk of never seeing the original $2,000 ever again. You're not a bank and high-risk, negative reward is the usual outcome.

Turn this "promise" into a binding contract with a payment schedule.

If you value your friendship then you will not charge interest for such a short-term loan.

If the other person values your friendship then they will pay back the entire principle within a timely fashion.

The reality is that a person who actually needs $2,000 and thinks they can comfortably pay it back in a month is not on level ground. Do they actually have a plan for getting caught up within one month's time? I'd estimate such a feat to require 20 hours of overtime per week. A realistic repayment schedule is $300-500 per month.

As a friend, I would have said that $500 is all I can offer for now. In my mind, I'd write it off as a gift so I can sleep at night but would hold them accountable for repayment.